Title: Record Outflows of $642.5 Million Witnessed by Grayscale's GBTC Spot Bitcoin ETF

In a surprising turn of events, Grayscale's converted GBTC spot bitcoin exchange-traded fund (ETF) experienced record daily outflows of $642.5 million on Monday, surpassing the previous peak of $640.5 million set on January 22. Despite inflows of $451.5 million into BlackRock's dominant IBIT ETF, the combined spot bitcoin ETFs faced a net daily outflow of $154.4 million, marking the first time since March 1 that outflows exceeded inflows.

The data from BitMEX Research revealed that Bitwise's BITB recorded the second-highest inflows at $17.6 million, while Fidelity's FBTC ETF suffered its lowest inflows since trading began on January 11, only generating $5.9 million. Notably, both IBIT and FBTC now find themselves among the top five ETFs in terms of year-to-date flows, a feat acknowledged by Bloomberg ETF analyst Eric Balchunas.

Since the commencement of U.S. spot bitcoin ETF trading on January 11, total net inflows have reached just over $12 billion. Currently, the assets under management (AUM) for spot bitcoin ETFs are nearing 875,000 BTC ($56 billion). The combined newborn nine ETFs, excluding Grayscale's converted fund, have gathered almost 489,000 BTC ($31 billion), with BlackRock's IBIT alone amassing close to 250,000 BTC ($16 billion) in AUM.

On the other hand, Grayscale's higher-fee GBTC fund experienced a decline of 38% in assets, dropping from approximately 619,000 BTC to 385,665 BTC ($24 billion) during the same period, as per BitMEX Research. Consequently, it now holds fewer assets compared to the combined AUM of the newborn nine ETFs.

Furthermore, the daily trading volume for U.S. spot bitcoin ETFs declined to $4.2 billion on Monday, down from the previous week's range of $5.5 billion to $7.7 billion. This figure is less than half of the record daily trading volume of $9.9 billion witnessed on March 5. BlackRock's IBIT ETF led the trading volume with $2 billion, followed by Grayscale's GBTC and Fidelity's FBTC with $1 billion and $630 million, respectively. The cumulative trading volume for all spot bitcoin ETFs currently stands at $145.8 billion, with BlackRock's ETF capturing a significant 48.7% market share by trading volume, while Grayscale's GBTC saw its market share drop to 25.6%.

Amidst these developments, the price of bitcoin dipped below $64,000, experiencing a sharp downturn since reaching an all-time high of $73,836 on March 14. The cryptocurrency is currently trading at $63,228 and has declined by 7% in the past 24 hours and over 10% in the past week. However, it remains up by approximately 50% year-to-date.

The broader crypto market has also witnessed a significant decline, as the GM30 index, representing the top 30 cryptocurrencies by market capitalization, fell by 16% to 137.31 since its peak of 164 on March 14.

These recent developments come as a surprise, given the record weekly inflows and trading volume observed by the spot bitcoin ETFs last week. The market continues to remain unpredictable, with investors closely monitoring the fluctuations and trends in the crypto space.

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